Oil prices soared to a two-month high as China started easing COVID lockdowns and traders expect a deal to limit Russian oil imports into the EU.
Brent crude surged above $120 per barrel on Monday morning for the first time since late March, while West Texas Intermediate soared to $115 per barrel.
The increase in crude prices comes as Shanghai allowed all manufacturers to resume operations starting from June, and Chinese officials reassured the public that Beijing’s COVID outbreak is under control.
It's no secret that China's Zero COVID policy has been draining the global energy demand among other industries as well.
Another factor that played a role in pushing the oil prices is the meeting that is set to bring EU leaders together in order to decide on a set of new sanctions that include a Russian crude ban.
It's worth noting that the EU leaders are trying to reach a compromise plan that would ban Russian oil arriving in tankers yet still allow pipeline imports. That would allow countries like Hungary, Slovakia and the Czech Republic to keep receiving oil via the Soviet-era Druzhba pipeline that runs through Ukraine.
